The debate over raising the minimum wage has been a hot topic after President Obama explained in his 2014 State of the Union Address that he intends to raise the minimum wage from $7.25 to $10.10 per hour, an increase of over 40 percent. While the President and his supporters claim that this increase would greatly benefit the economy and result in no loss of jobs, the opposition claims that this would be detrimental to minimum wage employees, resulting in 500,000 fewer jobs. In the following article, we’re outlining the pros and cons of raising the minimum wage.

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Economic Stimulus: Raising the minimum wage means minimum wage workers have more money to expend which means more money ripples throughout the economy as minimum wage employees are able to spend more.

More opportunity for jobs: If these minimum wage employees are spending more, then businesses are earning more and need to hire more employees to keep up with the increased sales from the minimum wage employees who are buying more.

Reduced Expense for Social Programs: Employees surviving at minimum wage are also often the same people who must rely on additional support of government run social programs to support themselves and their families on such a small amount of income. Raising minimum wage means some of these people would be able to better support themselves without leaning as heavily on social programs and this would ultimately mean lower taxes or a reallocation of those funds to support other needs.

Decreased Turnover Rate: Employees who are making a higher minimum wage feel more comfortable and satisfied in their minimum wage jobs meaning they are less likely to quit. This means there would be a lower turnover rate, which results in fewer expenses to hire and train new employees.

Inflation: The federal minimum wage needs to be raised in order to account for inflation, which raises every year and the minimum wage has only been risen three times in the past three decades.

Layoffs: If an employer has a tight compensation budget and the minimum wage is raised, it means they can no longer compensate the same number of employees at a higher rate and must make layoffs to remain within budget. So, while some employees may be making slightly more money, others will be left unemployed.

Price increase: Employers might raise prices of their product in order to generate enough income to support their more highly paid minimum wage employees, which could ultimately create a ripple effect for other shops and industries, resulting in a slightly higher cost of living, resulting in another push to raise minimum wage again.

Fewer Hirings: If business must pay their minimum wage employees more, they cannot afford to hire as many employees. According to a Federal Reserve Bank of Chicago study, “10 percent increase in the minimum wage lowers low skill employment by 2 to 4 percent and total restaurant employment by 1 to 3 percent.” Or instead of hiring fewer employees, the company may start outsourcing jobs to employees in countries that are willing to work for much less than $10.10 per hour, resulting in fewer jobs for Americans.

Competition Will Intensify: If minimum wage increases, overly qualified individuals will be vying for minimum wage positions, pushing younger, inexperienced workers out of the running and robbing them of their opportunity to gain experience and knowledge to build a resume for themselves and enter the workforce.

Applied Inconsistently: Many states have their own set minimum wages, which are currently above $7.25 per hour already. As of January 1, 2014, 21 states (and D.C.) have minimum wages above $7.15 per hour (Washington being the highest at $9.32 per hour), so the amount the national minimum wage is set at varies in significance from state to state.

Studies from both sides of the debate make it relatively clear that increasing minimum wage will not make a significant impact on the poverty level. According to the Congressional Budget Office report on The Effects of a Minimum-Wage Increase on Employment and Family Income, increasing the minimum wage from $7.25 to $10.10 per hour will only reduce the number of people in poverty by 900,000, a relatively few portion of the 16.5 million people that would supposedly benefit from the raise. This is because of the number of minimum wage workers, relatively few are actually in poverty, and of families who live in poverty, only about 7 percent have a full-time worker in the family meaning poverty is not because people are not being paid enough, it is because they are not working or not working enough.

Some suggest that creating more jobs for people who need them rather than raising earnings for people who already have them is a better solution for reducing the national poverty rate. Of course, this does not mean that raising the minimum wage wouldn’t be greatly beneficial to those earning it, but ultimately it does not help those who do not already have jobs to begin with.

What is your option about the national minimum wage? Should we raise it or not? How would that affect you? Join the conversation in the comments section below.

Comments

111 Comments

What good is this article? If you say, that raising minimum wage will not solve the problem. What will? The republicans definitely have done nothing to solve the problem nor democrats. Give us an answer that will work. How can the government help reduce poverty?

Education is the key. Without an education, even if it’s only learning a trade, most individuals will not escape poverty. Raising the minimum wage is a short term solution that merely addresses a symptom. Instead, address the cause: a workforce without a skill set required to get a job that earns more than the minimum wage.

Yes Education is the key but what happens when you have a huge amount of debt for that education; yes a better paying job, slightly above min wage but you still have all that monies to pay back! The price of Education has doubled if not tripled; eventually you can pay off your loans but a long time at the high interest rate you have to pay for 30 years. Something needs to be done; at my work new unexperienced hirees come in at my pay; and I have 7 years of experience something is wrong. I do have education, certifications but some employers don’t value the education. I survive; pay all my living expenses but that’s it! I am 56 years old will live in poverty my entire life but that’s my fault should have gotten a degree, I tell others but not sure how important that would have been but want to think it would have made a difference at least my job choices would have been better and could have moved up instead of staying at a no end job! Sometimes employers see good hard workers; that can do the job of 3 or 4 why not keep us here. We are working with the same low pay why ripple the feathers!

Easy way is to have the government train people to be productive members of society, to do this they could audit people living on disability to see if they actually need it, having them go to the doctor’s office to get a mandatory physical examination. Then, we can stop wasting money trying to feed people who aren’t being productive, and get people educated. If people don’t make an effort than they should not be living on other people’s money.

The moment I started hearing about raising minimum wages I had mixed feelings. I remember when people were making a little of nothing and the moment they gave a raise everything else seemed to raise to. It was not clear to me then why it seemed that way but it makes sense now because I’m older and have a better understanding. Looking at the out come this can result to and being a low class worker I would honestly rather it stay the way it is now. At this point we can figure out ways to make ends meet and even elevate our selves to do better if we really wanted to. It would be more competition if the wages are raised to high with just regular jobs. And not giving teenagers a chance to get experience in would not be fair at all. They need that experience. It makes a difference in getting your feet wet first before your thrown to the wolves. They can be set up for failure. Like one of the ladies responded if we wanted better jobs we should have took the initiative to get a good education when we were younger. It’s no ones fault but our own.

Gov’t can’t fix poverty. If it could, it would have. The war on poverty has not had any effect in the 40+ years that it has been going on. The Federal Gov’t has no business in trying to resolve the issue anyway. It is not one of its responsibilities, but rather, if the people wanted the government to “fix poverty” that would be a state and local issue.

And Theman, while your thought is understandable, they certainly are false choices. 1 – it costs more in NY and LA than KY, true. This demonstrates that a federal minimum wage is not workable. the article says many states have min wage over the federal amount. Seems to me that many States like the idea of a minimum wage and have set it according to their state economic situation. That way the costs in NY have little to no effect on someone in KY. 2- People who get the same amount of government aid as they would for working as justification to increase wages doesn’t solve the problem. When would this logic end? Raise the min wage and costs increase. costs increase social welfare must increase. better raise min wage again… social welfare went up. I mean, really, take this mental experiment to its end. Where does the minimum wage end up, $12? $15? $6,983?

I would challenge people to consider lowering or eliminating the federal minimum wage. this would leave the decision to set or even have a minimum wage to the states. We all have more of a say in our State and local government than in Washington DC anyway.

That makes no sense. The government gets its money from INCOME tax. More income means more money for the US government. There is no way, shape or form that the government “benefits more by not” fixing poverty. Just, please stop.

Yes, it is, and there is. Success will come to those who those who work hard enough for it. If you want more money, get a better job, if “It’s not that easy.” As many have said, do something to give yourself the edge over the competition, that doesn’t mean you have to get a degree. There are plenty of opportunities such as community service and volunteering, and many others that will give employers another reason to hire you. Even if you only get a minimum wage job, work hard. Do it to the best of your ability and your employer or manager will notice. Work hard. Do everything in your power to do well and it will pay off. Don’t be scared by a little hard work and don’t let difficulty seem like impossibility, it’s not. Some bumps on the road to success will only make you appreciate it more.

I definitely agree with you on this one. If it was easy the problem would be resolved already. Education cost money and it’s costly. Yes maybe worth it but there is still no guarantee if you have an education that you will make enough to support your family. I am 30 years old. I am still in school debt is adding up. I know I have to pay all this money back but based on the cost of living currently it seems like it will take forever. One gets their bachelor’s degree and it still gets you an entry level position job. I don’t get the point. People say the more opportunities you will have but it doesn’t feel like it. Raising minimum wage sounds like a good idea. What would really happen is everything will go up; groceries, gas, mortgages/rent, electricity and anything else thought of will be raised. If minimum wage is increased without other law or rules being regulated companies have more of an excuse to outsource to other countries. We as a government or the public voting on laws, should be putting a tight limit on how much a company can outsource and how big the executives’ salaries and bonuses should be. Education is valuable and important; however, it doesn’t completely solve the war against poverty. Raise minimum wage without shooting our cost of living through the roof.
Diary of college kid

It’s actually very possible to escape poverty with hard work. I was born to a very poor family in one of the areas with the highest poverty rate in Houston. My parents decided that living there wasn’t the best option for us and that we could do so much better. Instead of whining to get the minimum wage up, they stayed at their jobs (mom as a linen worker and dad in construction) and worked harder to get the money to move out. Right now we live in a very nice suburban neighborhood and we’re a middle to upper middle class family. It’s the exact same story for my uncles and aunts who also lived in the same area. It’s possible to escape poverty, if you want it bad enough, you’ll do it without complaining.

Hey dummy this is a good article giving an unbiased view on the issue of raising the federal minimum wage.

It’s simple. It gives some of the pros and cons. Now it is up to the reader to determine what they believe is best for our economy and to take that into consideration when voting on bills or public officials.

My issue with this is a lot of Americans just look for someone that sounds good and makes them feel good then they vote on whatever that persons opinion is on an issue. This kind of mentality is detrimental to our society.

Most reporting and news is no longer unbiased because too many people just want an answer and be told what to do so that they don’t have to do any thinking on their own. That and the reporters can’t control their pride and ego and keep their personal opinion to themselves.

yes, I agree with you. I think that keep raising the minimum wage while not dealing with costs is counterproductive. People will calculate the cost of doing business, which includes compensation to employees. It’s business math, and crucial. There has to be another solution, that allows for the free market, and yet, restrains excess on both the workers and the business owners sides.

Here are a list of actions that WILL reduce poverty and income inequality:
1. Raise the min. wage to $15 per hour in phases of about $1.10 per year
2. Raise taxes on the top 1%
3. Provide free higher education.
-Making college tuition free will provide many more people the opportunity to learn new skills and earn more
4. Provide Universal Healthcare
-Too many Americans are faced with outrageously high medical bills and many more are simply unable to even go to the doctor
5. Cut Defense Spending and instead invest that money in fixing our crumbling infrastructure(which will create many more well paying jobs) and education
6. End the War on Drugs
7. Stop getting starting wars and getting involved in other nations business.

Your suggestions have all been tried save the comment about not getting involved in wars. Your response is the typical big government response. Free markets are better for everyone, including the minimum wage earners.

Scott, I don’t blame you for your answers because you are repeating the dominant narrative … the one that is taught in schools and universities. There was a time when free market capitalism was taught and understood by the majority of Americans but the the dominant paradigm has changed and now capitalism is barely understood among even a small percentage of Americans. It simply is not taught.

When I went to college I was also trained to look to Big Daddy, er the government, to solve societies woes … both economic and social.

A fish is not aware that he is swimming in water, you have to stand outside the aquarium to realize that the fish is in it. This is difficult to do precisely because the “run to the government” reaction is second nature to us after two generations of indoctrination.

If you study the arguments made by the Chicago School of Economics beginning with Milton Friedman and the other economics coming out of that tradition, you will find that Keynesian economics (the dominant paradigm of our day) does not stand up to scrutiny. The Mises institution has a great website and online classes … also a great resource.

Keynesian economic principles are precisely what has got us into the boom and bust cycles, quantitative easing, and the like.

Again, I understand if you find my comments to be alien because they are no longer taught by the majority of educators. Peace!

I like that you have a plan. I like that it makes some sense. Good luck with the logistics. Even if you got universal bipartisanship somehow, making that plan work would be a nightmare cause there is no universe where it’s as easy as you make it sound

I think we should have minimum wage because its people that need money for there kids to live on. In the passage it says, ” If an employer has a tight compensation budget and the minimum wage is raised, it means they can no longer compensate the same number of employees at a higher rate and must make layoffs to remain within budget. ” This is impor

people should get minimum wage because people will want to stay with they job and people will not struggle. In the passage its ” Employees who are making a higher minimum wage feel more comfortable and satisfied in their minimum wage jobs meaning they are less likely to quit.” This important because they can make more money because less people are likely to quit. As a rule if, less people quit then more money for them.

Stop hireing undocumented workers who are ultimately driving up the cost of living and driving down our realized minimum wage. They are sending the money to other countries and not feeding our economic growth.. Limit the amounts of children a lifetime welfare recipient can have!!

You know how to “partially” stop illegal inmigration? illegal inmigrants usually agree in getting paid less than the minimun wage.. so.. Lower the minimun wage.. that way, the 5% of unemployed people (legal residents/citizens) will be able to legally get those jobs that where taken by the illegals, and most of the illegals that will be without jobs will go back to their country of origin (most unemployed illegal inmigrants went back home in the 2008 crisis)

The biggest issue with the economy right now is the government has too many expenditures and too many people are not working. The first and foremost thing that the government should do is to eliminate welfare. Welfare was designed to support people during the Great Depression who could not support themselves. Currently, welfare is being completely abused and people are on it just because they don’t want a job. Obviously, there are those who do need it and that’s a discussion for another day, but the bottom line is welfare needs to be eliminated. The government is spending roughly $1,000,000,000,000 (1 trillion) on welfare programs annually, if eliminated, that is $1 trillion that could be spent elsewhere, improving the economy. Now when it comes to raising the minimum wage. This is the absolute worst idea anyone has ever come up with to fix the poverty level. Economic fact: the more there is of something, the less that same thing is worth. Whoever thinks dumping more money into the economy will fix things is dead wrong. If the minimum rage was to be increased, businesses would have to spend more on their employees, which in turn gives them less revenue, which in turn makes them raise their prices to make up for that lost revenue. Now their prices are raised so it costs more money to buy the same thing, which negates the minimum raise increase. There are so many economic blunders with raising the minimum wage, the inflation would get out of control if that were to become a reality and America would be on a quick trail to be like Germany between WWI and WWII.

Yes there are ups and downs to raising minimum wage but the ups outweigh the downs. According to “Why We Should Raise the Minimum Wage” by Robert Reich, on CNBC.com, the Congressional Budget Office estimated that raising the national minimum wage from $7.25 to $10.10 an hour will raise 900,000 people out of poverty. With that being said with more people actually being able to support their family all citizens would end up paying less for Medicaid, food stamps, and other assistance lower wage family need.

when you raise min wage it will make it harder for people that aren’t as experienced in that work to most likely get fired so instead of making $6 an hour for pay they will get $0 and that can run them out of a house and could make it were if they had a family they couldn’t care for their family.

Well, the government can’t do much to fix poverty except for improve our schooling system to promote less dropouts and more people getting an education that can improve the country’s workforce. Other than that, people have to be motivated to get a job, and stop relying on the government to fix all their problems.

awareness needs to be raised vs. wages. individual responsibility will definitely help. it seems that we are now a culture that is enabled and depend on the government too much for our needs. we are dumbed down to think that we can never become independent of the system. some will complain that government is getting too big. i agree. but where people can’t find it within themselves to develop into a self-sufficient people, that’s where government starts to infiltrate our lives more, enabling us and making us weaker and more dependant on them. raising the minimum wage will help the individual getting the raise, but if the individual is operating with a mentality of poverty, even if given the raise, they will bring that mentality along with them and still be poor. if you raise wages, employers will raise prices of products and services, which will ripple effect into the new “poor wage system” and people will be asking for another raise soon enough. from experience i started at minimum wage in 2000 when the economy wasn’t so bad as it is now still i had a poverty mentality and have accrued massive amounts of debt coming out of high school and going into college. i survived on credit cards, student loans and anything that i could possibly depend on from the government. but then, i realized that i had the ability and skill to improve and get a better job. so now i have a 15/hour job that pays better than before. yet today i still struggle with finances. it’s true that i am single, and wouldn’t think to have kids without strong personal development and confidence that i can afford to take care of a child. but what i want to share with all is that i found a better way within the last three months. and it’s not through corporate america but a revolutionizing of the way we market and do business. and i’m just going to leave you all with a quote by thomas jefferson and it is this. IF YOU WANT SOMETHING YOU’VE NEVER HAD, YOU MUST BE WILLING TO DO SOMETHING YOU’VE NEVER DONE. for myself, i realized that what helped me the most is “PERSONAL DEVELOPMENT” you can only get outside what you produce from the inside. if you’re not working on yourself, you’re not working on your deserved level of income. i found a better way and willing to help those in need if they’re open to other options other than their current source of income. if it is to be, it’s up to me (not the government)

Another con…the “trickle up” effect. The supervisors of minimum wage workers who are presently making $10 to $15.00 per hour will not work for that pay if the workers they supervise are making the same amount (or slightly less). The pay of individuals supervising minimum wage workers will necessarily need to increase resulting in still fewer hires and/or increased retail prices.

I agree with you on supervisor / manager of minimum wage workers should get the trickle up effect. I’m a Assistant GM at a mom/paps pizza shop in Ohio. When, I became the manager the minimum wage was set at $5.15hr and I’m getting $8.50hr back 5-6 years ago. Now the minimum wage is $8.10hr and I still make the same. I don’t think it’s fair at all that there is no law what so ever that protects our pay spread. It’s nice for minimum wage employees but not the ones that supervises them. But, there’s a reason that minimum wage is called what it is because it reflects the work ethic of particular group of people that doesn’t want and/or qualify for the extra responsibilities to supervise/manage. Anytime minimum wage goes up, any products or services goes up as well. Minimum wage should of went up, but as much as it did and will is just ridiculous. They stop were it’s at and re-evaluate the effects before continuing. At this point I should step down from management and be a minimum wage employee.

My opinion is we need to make a compromise on both sides of the isle. Raise minimum wage not to a set amount, but to an amount that is relative to the cost of living in that area. It costs a lot more to live in New York and LA than it does in a small town in Kentucky. And every few years it has to be reevaluated in each area depending on cost of living in each area. I think that will solve the problem of companies raising prices to compensate, because they know in a year or two the cost of living would be reevaluated and minimum wage would rise again if they raise prices. We also don’t want companies to leave the country for this. So I think we should lower corporate tax’s. The state will be getting a huge bonus in income taxes from higher paid employees, and less compensation payed to welfare and food stamps. and we should also lower some regulations on things to make make it a more friendly and profitable for business. I believe if we do all of this as a compromise. You think this only effects minimum wage workers. It doesn’t if someone was making $8 and got a raise to $12 because of minimum wage was increased. that means the person making $12 will demand more money. and so on and so on. this will effect wages probably into the $20-$30. Creating a larger and stronger middle class. Right now the poor inexperienced people collecting aid from the government, are collecting about the same as if they were working a full time minimum wage job. I know too many people that would say why should I work 40 hrs a week to get the same thing as I get now doing nothing. Make if it is more appealing to work 40 hrs a week because of a higher wage. more people will be going to work. and then they will be get more experience and get paid more. and so on.

I agree.. I personally won’t work for less than $20 an hr in my field.. I regularly get $30 plus an hr at jobs where I have been for a cpl yrs..
However some places are hiring on the pretext that in a few days will be raised up from say $16 to $20 per hr. Only to be put off for weeks till finally was told that it was wrong of the person who hired me to have given me that information..
Wtf

Hi. You said that we should lower corporate taxes to alleviate the high cost of raising the minimum wage. Are you serious? We did that. Remember Reagan, and “trickle down” economics? That didn’t work. The tax breaks did NOT trickle money down the food chain. The people at the top kept it. What you need to realize is that they have enough money to do this, they just don’t want to let go of it.
Also, “the poor inexperienced people collecting aid from the government”? The actually get a fraction of what they would get if they were working full time at a minimum wage job. Look it up on your state’s economic welfare website, and start doing the math.

i don’t think this will be beneficial to our economy for every 2 people being increased that could be a 3rd job and yet can result in a layoff. how is that going to beneficial, or will it just make our economy fall flat on its face

Hi everyone, I am Nicole the Community Manager for When I Work. I’d like to thank everyone for making this an interesting and healthy discussion. This is an important topic and can get heated. I appreciate the insightful comments and education that everyone has been providing.

My opinion is that minimum wage should increase because It would benefit those who basically do not have the time to obtain a full time job and who are living pay check to pay check with help from the government as well. A small increase would not create as much competition as many would claim, but it would help those who do not have an education as opposed to those who already do have a degree.

So what you’re saying is we should reward those who chose not to get an education?? What about those who worked hard and obtained a degree while supporting ourselves at a minimum wage job while attending school? Because we chose to better ourselves, we should only receive wages based on our work instead?

Some people that do get an education, do not end up finding a job in the field they wanted. Or better yet, some get ill and get cut from their job. Some people get denied government assistance and still have kids they need to take care. It’s kind of hard when the cost of living is so high.

Agreed. In addition to this raising minimum wage does not allow the free market to flourish. The government is not actually in place to ‘create’ jobs as many are lead to believe these days. The ones who create jobs are employers, real people if you may. The government has CLEARLY demonstrated they are incapable of handling money so why allow them to control ours? By raising the minimum they are forcing employers into a difficult situation because they cannot afford to pay these people who’s work may not be worth more than $10 an hour. This would create something bigger than just a ‘ripple’; Likely forcing the dollar to collapse sooner than it already is.

the majority of workers making minimum wage work for franchise businesses I don’t think they would close their doors they would just raise prices also if americans made a living wage they could become consumers and that creates jobs.

what about those people that are going to school and getting a degree that have no choice but to have a minimum wage job? I am currently a college student with an apartment, its hard to keep my mind on school if I was to have another job seeing the fact that I’m a full time student with a part-time job. are saying people like me that are trying to better myself but its hard to do so when I need to work another job just so I can have a place to live.

I don’t think enabling those with little to no education is a sensible approach. Perhaps promoting and encouraging individuals with low skill levels and lower education to improve their quality of life overall by continuing their education and experience. Minimum wage jobs are not designed for individuals to make a substantial living on. Minimum wage jobs should not be a means of providing for a family. They are intended for young, inexperienced individuals, typically teens in high school and/or college students. They should primarily serve as a part time source of income while furthering you educational career or trade. Individuals who desire a higher paying occupation take the necessary steps to obtain there desired income and work on enhancing their skills and education level to meet the qualifications of a higher paying job. A minimum wage job should not be a long term career. Not to mention individuals who come from lower socioeconomic status qualify for a larger amount of federal aid to pay for college costs. There is always a way to obtain the education that is required in several higher paying careers. Research the resources available such as grants, scholarships, financial aid, work study programs, etc. I can’t sympathize with those who don’t want to put in the time, effort or hard work. Its a hard process but remember nothing good comes easy so you will always get out what you put in.

Instead of pushing for a higher minimum wage, which will only cause a ripple effect to a higher cost of living, we need to focus on funding education so that people are more prepared to enter higher-paying jobs.

AMEN to your comment. Too many people are earning “minimum” wage because either they can’t or won’t apply themselves to becoming more valuable employees through education and training. Why throw more money at someone who is content with staying put. Why not use that resource to help those who want to grow – into higher paying employment?

A minimum wage job is suppose to be an entry level stepping stone – not a career goal.

Both of your comments are way off. Many people in that position are there because they are financially unable to gain more education. In case you haven’t been paying attention for the past, oh, DECADE, the cost of education has skyrocketed. Do you think someone making $8hr can afford to go to college? Of course not, that’s why they aren’t doing it in droves. They don’t have the money, and many don’t have any family financial support to help them through.

A lot of highly motivated and intelligent people wind up in tough situations. Some will rise, some will not. But to act as if all of them are unmotivated slugs is narrow-minded, snobbish thinking.

I should also point out the high unemployment rate of college graduates.

The only way out of this mess is to stop inflation. Raising the minimum wage will fix nothing. The fact that one cannot live comfortably on minimum wage is a symptom of inflation, not lack of education. A minimum wage hike will only help to foster more inflation. The politician are playing on the public sympathy and the knowledge that the general public is too braindead to know what’s really happening and why a wage hike is nothing more than a bandage on a massive hemorrhage.

Apparently, you’re not aware of the student loan crisis taking place, where student loan debt is at a record high by exponents, and many students are unable to pay. All one has to do is read and research to know this as the info is everywhere. But, my guess is, reading is not something you do… ever.

I think you should educate yourself on the topic and then come back to this.

I’m currently in college and working a minimum wage job that barely helps me pay the bills. My hours fluctuate every week. I’ll work anywhere from 24 to 40 hours. 24 is usually the average I get though. An increase of even a dollar would help. I’m at this minimum wage job because when I apply for a job in the career field I went to school for I keep getting passed over for someone more qualified or told they want to train someone without schooling, so they can train them their way. What good is my education if some places don’t want me to have it and others don’t give me the opportunity to gain experience? There are more factors than we realize when it comes to employment, but with having 2 children to feed. $7.25 isn’t goingto cut it if I only work 24 hours a week most the time.
I hate when people find out I’m on food stamps because I only make enough to pay my bills, but not put food on the table. It’s sucks. I work hard every day to support my family. I just want to stop being considered low income and stop relying on the government to feed my kids.

An employer only has to pay an extra $22.80 per day per employee. I find it hard to believe that a anyone would go out of business or have to lay people off because of this minimal expense. Minimum wage was implemented so ONE person could afford to live. Nowadays, TWO people can’t survive on minimum wage! Even the $2.85/hr increase isn’t enough! Imagine working a crappy job you hate just to make enough money to barely scrape by. Just raise it already and stop wining about the pittance you have to pay to the people without which you wouldn’t have a business. And as a bonus the employees will be happier – not that they really care about their happiness but happier people are more productive people!

I feel raising the minimum wage would make some people want to stay in their same position rather than moving up with education. I think instead of minimum wage being in question it should be how can we raise the funding in education so that more people can afford it and obtain degrees.

I understand there are some pros to raising the minimum wage that high is ridiculous. There are college graduates with their bachelors barely making $15.25 an hour, and that is after 4 years of college and thousands of dollars. I do not agree with raising the minimum wage to $13.25 is wage too much. The world is getting more competitive now, and if people really want to make more money, then they should maybe considering going to college and getting an education. Its inappropriate to ask for more money without the proper knowledge and tools. Plus a minimum wage raise would only benefit people short term. If businesses have to pay more in employee wages, then there definitely will be an increase in prices, which then will once again demand another minimum wage raise. It a circular pattern. The minimum wage could be raised by a small amount but not as drastic as to $13.25 or up to $15.00 like what the unions demand.

In the news we all here that workers are striking to have the minimum wage increased. Why don’t we try taking a different approach and create a new law that will put a limit on how much people can earn, a maximum wage. One country that is taking the steps to do this a Switzerland, according to CNN the Swiss are trying to put a wage cap on their CEOs of a ratio of 12 to 1. However we shouldn’t stop a wage cap we also need to impose a luxury tax on the wealthy this way any gifts or loans to a CEO will be limited, this is what the NBA, NFL & NHL do to their players in addition to a wage caps. The idea behind these two ideas, of a maximum and a luxury tax, is to combine them with the trickle-down economy to create a better economy. This would be done with the a wage limit, luxury tax and the trickle-down economy, because the people at the top would only be able to get so much wealth before it limit is reached and then must flow down to the people beneath. By putting a limit on how much we allow top executives and forcing those to pay a luxury tax to prevent those individuals from getting any more money than the law limits them will create a better world and a stronger economy in my personal opinion, only together we can bring this law into being.

You know if it were even possible in a free society to (dare I say) dictate such things, someone then gets to decide who is making too much. Soon it will be down to what each job is worth, and then the attributes of individuals will be considered which will qualify some as ‘more deserving’. Its already like that in the tax code why would this be any different?

NO, absolutely not! You cannot put that kind of power into few hands and expect anything but tyranny.

You failed to discuss the fact that most of the folks who would “benefit” from increased minimum wage would not actually have more money at the end of the year. Higher income means less or no welfare benefits: less premium tax credits for health insurance or loss of Medicaid benefits, less cost sharing reduction subsidies (higher health insurance deductibles and copays), less financial assistance for education, loss of food stamps, less or loss of earned income credit, less state child care cost assistance, section 8 housing assistance, less or loss of state utilities assistance. And to top it off: higher taxes. While all of this helps reduce the national deficit, it doesn’t actually mean more money in a minimum wage earners pockets and may actually encourage them to work less. The financial gap between poverty and earning a comfortable living is one that a person must leap to actually see a difference in their bank accounts. There is a weird line at just under $30,000 annually that requires a $5,000 to $10,000 increase in income to overcome the loss of benefits (especially if you have children).
Higher minimum wage will accomplish nothing without more intelligent welfare benefits rules that decrease benefits slowly as a persons income improves.

Low skilled workers will suffer the most every time the minimum wage is raised. In particular, entry level workers will find it difficult to justify the generous wage when they have no experience, no skill, and no way to gain either. This is exacerbated by the idea of having both a minimum wage law and a massive illegal immigration operation. In this scenario you necessarily price out the lowest skilled legal workers. Illegals need not follow the minimum wage law while low skill legal workers seek ordinary legal work. This rewards employers who will hire illegals and puts at a disadvantage those who don’t.

Education is not always the answer. There are some people who are not academic, does that mean they have to be poor?

I don’t have a formal education.
I would have tried to get one when I left high school IF it wasn’t so expensive. I have 58 college credits now; I also have a six figure income. Something has got to give – either make school more affordable or (other then social programs) assist people who are not college candidates

Thank you for your comment. It is priceless !!!! I agree with you that [formal] education is not always the answer. There are so many entrepreneurial folks who became successful without racking up $100,000 in college debt. Don’t get me wrong, I am a high school teacher and I support higher education but I don’t think that it is always the answer as people commonly assert. There are different paths for different people.

I do think – and you will probably agree – that the knee-jerk answer to every complex problem is … more [formal] education. That response is so commonplace that it has no meaning. It’s almost a way of saying,

I mean, hey, give me any complex problem involving the economy and I can respond, and everybody will nod their head … right???

Fact is, minimum wage laws lock young people out of the labor market .. . the ones who desperately need these entry level jobs to learn job skills. Why pay a clerk a high wage to take an order when you can automate by putting up a kiosk? If we want to greatly reduce entry level employment, that’s the way to do it. Do we really think that raising the minimum wage raises people out of poverty … cough, choke …. whether it’s $7 or $8 or $9 or $10 … you will never support yourself on that. These are entry level jobs and Economist Thomas Sowell points out that the vast majority of people working minimum wage jobs are living in shared family arrangements where people in the same household share expenses.

What happens to those who have 20 years experience and already only make $13/hr do we get compensated for our experience my time is worth way more than what I make for being in a health care setting!!!!! Pharmacy Techs do all the work while the pharmacists talk about their last vacation but were the ones making sure all these customers come back and pay your big salary while I figure out how I’m gonna put food on my table and I’m DAMN GOOD at my job!!!!

I was troubled that PEAT MOSS asked, “How can the government help reduce poverty?” This knee -jerk response to look to the government to solve all of our problems is simply untenable and indefensible. I call this the Big Daddy syndrome. These folks want a Big Daddy to run to.

That said, I was very pleased that WHAMMY responded with, “Gov’t can’t fix poverty. If it could, it would have. The war on poverty has not had any effect in the 40+ years that it has been going on.” In fact it was LBJ who started that ball rolling and though LBJ may have had good intentions, RESULTS ARE WHAT COUNT, NOT INTENTIONS. LBJ obviously did not understand the principles of the free market.

I hope those of you who believe that the government should solve poverty – as miraculous and unhistorical as that suggestion is – will read Milton Friedman, Fredrich Hayek, and Thomas Sowell. The free market will work if we allow it to …

Alabama has no mim wage and it is one of the poorest states.Telling people they should work for nothing is stupid,and a form of brainwashing.Telling people that if you work real hard, your employer will compensate you is very gullible,theses are all forms of slavery.Also the idea that we must become more independent, not rely on big daddy government, what a joke.I am going to tell you the secret,this came from me. I didnot read it in book, it came from my on mind.First of all you must have and open mind,this will be hard to accept,here it is,we are all 100% and mean all of us, 100% dependent on the government.Also the more money you make and earn, makes us more dependent, not less, on big daddy government.Heres why,money is printed by the government,a group of people in control,it does not grow on trees, the money is given to the states to run the economy.The people who print the money, control you and me as long we use, even one single dollar, it a system of slavery that has its good and bad points.Therefore the more money you have the more control they have over you.This should get you thinking,this is just one secret.Dont want to write to much.

They should raise the minimum wage bescause people domt get paid enough and have children to take care of and many more loving family they have to take care of like they mother father grandparents and more.

we should rasie minimum wage because some people work really hard and barley get paid moeny to live on for the year. in the passage it says,”Raising the minimum wage means minimum wage workers have more money to expend which means more money ripples throughout the economy as minimum wage employees are able to spend more.” This is important because there are people who work hard and dont have alot of money to support there families. As a rule, if you work for minimum wage then you should start saving up for you life.

people just take for granted what they have. if they were stripped of it all, they would be wishing they had gone to college, actually worked hard for their money, and finished school. the problem is not the minimum wage, it is because people expect to be handed money without actually having to lift a finger. I wish that we could have a nationwide tradition of showing the employees what the rest of the world is like so they don’t live out the rest of their lives in a bubble, thinking that they’ve got it sooo bad because they have to bag groceries.

ok so taking into account i live in California, 21 y/o, recently released from the military (but don’t have any benefits), i work 2 Jobs (Full and part time), AND I go to my trade school full time, why is it that no matter what i do i cant even go 3 days after getting paid before i have to think about “how am i gonna save money today” its absolutely sickening to me when i get 2 checks and by, maybe, a week later im already strapped for cash? Mind you im not EVEN going out and enjoying times with my friends, family, and loved ones…..is this what i actually fought for?

Me as a young male who has worked and excelled in order to receiver a higher than minimum wage paying job, my question is what happens to my pay? If minimum wage increases by nearly 3 dollars should my pay also increase these are also things you need to think of the wealthy (not saying that I am wealthy by any means) want to stay wealthy and will do what they must in order to do so. So increasing minimum wage will also increase the pay scale for others because a person who has worked hard to get to the point were they are making 10 dollars an hour just to now get bumped up an extra 10 cents because that is what they make flipping burgers at McDonald’s… That just doesn’t seem fair to me and would not sit well.. That’s just my opinion and in doing so everyone’s pay increases would ultimately maybe not initially but eventually increase prices of products so that business owners can maintain there profit margens because there not going to sacrifice making money because the state decided to tell they there obligated to pay there employees more… Food for thought before we are so pro wage increase! Think about the repercussions

Nobody has addressed the issue of the individuals that are currently in skilled jobs that pay $15/hr. I’m in a skilled job and if minimum wage goes to a minimum of 15/hr does everyone else at that level now go up $7 more per hour. So if you get 8/hr and go to 15 then those currently making 15 will have to go to 22 and so on. Businesses will close and unemployment will go higher. If you don’t believe it do some research on Walmart when they tried to set a precedent by voluntarily raising their minimum wage. What they thought was going to work didn’t and they laid off around 19,000 employees. You want to live better then it’s supply on demand. Its not just getting a degree in just anything you have to find the demands

Raising minimum wage is NOT an answer. I currently employ many people (all above minimum wage) that have skills that makes them more valuable than a high school drop out (I am one). If minimum wage is raised to say $15 you are punishing people that are already at this point. They will not get a raise however others around them are getting thier pay doubled. Bottom line, if you want to make more money work harder. I am a high school drop out and make far above minimum wage, hard work and commitment to myself and my employer have gotten me to this point. NOT a government handout that I felt entitled
To. I know many will not agree and that’s fine this is just my 2 cents.